DBS starts trading on London Metal Exchange
DBS said on Monday (Jun 21) it has commenced commodity trading on the London Metal Exchange (LME), as metals prices surge on global financial recovery, after becoming the first bank in Asia to be issued bourse membership registered outside London.
DBS has become among four current LME Category 4 members, that allows the bank to trade because of its own account and with respect to clients but with out a clearing ability.
The climb in metals prices reflects abundant market liquidity, speculative buying and robust demand prospects in the next decade from the booming renewable energy and electric vehicle sectors, both emerging as key metals-consuming sectors.
"Metals are an important enabler to accomplish a sustainable future, and as global demand for the commodity is growing exponentially, so will expectations on the industry's sustainability standards," said Tan Su Shan, DBS' Group Head of Institutional Banking.
The 144-year-old LME, owned by Hong Kong Exchanges and Clearing Ltd., is the world's oldest and biggest marketplace for professional metals and Europe's last open-outcry trading floor.
Source: www.channelnewsasia.com
